Research firm Trade Intelligence has raised serious concerns about the effect of online gambling on food security, consumer welfare and the retail sector as a whole, noting that punters are increasingly financing their betting with money that otherwise would have been spent on groceries.
The KwaZulu-Natal-based firm, which specialises in research on everyday consumer goods, says South Africans are increasingly gambling with money that would otherwise be spent on food and household essentials, placing tight household budgets under further strain.
Trade Intelligence conducted an online survey in late 2025 to understand how punters finance their online betting. The survey attracted more than 700 respondents who said they had gambled online or at interactive betting sites.
When asked what spending was affected by their gambling, groceries and food and household essentials were by far the most commonly cited, followed by fast food. Other categories, such as clothing or entertainment, lagged well behind.
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That suggests online gambling is not merely replacing discretionary spending but is cutting into basic household needs.
The findings come while South African consumers are already under pressure from high food prices, weak economic growth and rising living costs. Retailers have consistently warned that discretionary spending is subdued, and the survey adds evidence that essential spending is now also being squeezed.
According to the National Gambling Board, the total value of bets in South Africa’s gambling industry surged to about R1.5-trillion in 2024-25, an increase of nearly a third from the previous year, driven largely by online gambling.
Win at all costs
“The main motivation to engage with these sites isn’t excitement, entertainment or escapism — it’s to win money. Nearly two out of three players said this was ‘definitely’ a reason why they play/gamble,” Trade Intelligence said.
“While half of these players say ‘it depends’ when asked whether they generally win or lose, most of the other half admit that they lose more than they win; 25% don’t keep track of what they spend, win or lose at all.”
Taken together, the data points to a troubling cycle. The researcher said players are gambling in the hope of making money to cover everyday expenses such as groceries, but in doing so they risk worsening the very financial pressure they are trying to escape.
The rise of online gambling has also blurred traditional perceptions of what gambling looks like. Trade Intelligence said casino-style games such as Aviator, Starburst and Sugar Rush are among the biggest drivers of traffic to platforms such as Hollywoodbets, Easybet and Yesplay. Many players may not even consider themselves gamblers, despite engaging in high-risk betting behaviour, it says.
“Would a tax on winnings curb spend on online gambling sites? Or would it just put further strain on household finances? This will no doubt be debated at length. In the meantime, South African retail needs to be content with yet another constraint to its already subdued growth,” Trade Intelligence said.
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